Dublin, Jan. 26, 2026 (GLOBE NEWSWIRE) -- The "Hardware Firewall - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The global hardware firewall market, valued at USD 22.87 billion in 2025, is forecasted to surge to USD 41.62 billion by 2031, securing a CAGR of 10.52% from 2026 to 2031. This growth trajectory is fueled by increasing zero-trust mandates in governmental and critical-infrastructure networks, accelerated edge-computing adoption, 5G densification, and the significant rise in encrypted traffic.
While device/system hardware leads revenue, managed services are growing at a faster pace as enterprises transition from capital-intensive purchases to outcome-based contracts. Large enterprises invigorate refresh cycles with terabit-class appliances, and SMEs contribute to growth through unified-threat platforms. North America remains a market leader, but Asia-Pacific is expanding rapidly as China, India, and ASEAN nations strengthen regulatory frameworks in alignment with global cybersecurity norms.
Hardware Firewall Market Trends and Insights
- Increasing Sophistication of Multi-Vector Cyber-Attacks Necessitating ASIC-Accelerated Inspection: The rise of ransomware, supply-chain exploits, and state-sponsored operations are pushing beyond CPU-centric inspection capabilities. With 1,132 known vulnerabilities reported by CISA in 2024, an increase of 23% from 2023, dedicated ASICs in hardware appliances are essential for real-time threat mitigation. Fortinet's SP5 ASIC platform, capable of 3.2 Tbps throughput, demonstrates the potential of silicon-enhanced security that supports behavioral detection of elusive zero-day attacks.
- Government Zero-Trust Mandates for Federal and Critical-Infrastructure Networks: U.S. Executive Order 14028 mandates zero-trust architectures, with a USD 9.8 billion modernization fund motivating bulk procurement of advanced appliances. Similar directives like CMMC 2.0 in defense contracting and Europe's NIS2 are expanding the demand for indispensable hardware enforcement nodes. Hardware appliances are no longer optional but crucial for compliance and security in government-regulated networks.
- Rapid Shift to Firewall-as-a-Service Cannibalizing On-Premises Hardware Demand: The trend towards cloud-delivered security models is leading to decreased demand for on-premises hardware, particularly among organizations aiming for scalable frictionless models. Zscaler's 35% revenue growth underpins the increasing preference for service-based offerings. Although mid-market firms lean towards managed firewalls, essential performance and data-sovereignty requirements still tie enterprises to on-premises solutions, indicating a bifurcated market future.
Segment Analysis
In 2025, device/system hardware captured 63.12% of the market, favored for its ASIC-based throughput required for encrypted traffic inspection. However, services, projected to double by 2031 with a CAGR of 12.72%, show organizations outsourcing management and incident responses to service vendors. Large enterprises maintain investment in high-performance hardware, while SMEs benefit from vendor-hosted solutions, alleviating staffing issues.
Zero-trust architectures prompt enterprises to deploy hardware appliances for enforcement, increasingly paired with managed services subscriptions. Fortinet's 23% year-over-year support-services revenue increase indicates growing managed-services adoption, where integration complexity around AI-accelerated appliances heightens demand for professional support.
In 2025, large enterprises accounted for 68.12% of market share, driven by refresh cycles in sectors like BFSI and telecoms. SME engagement shows a 12.94% CAGR, narrowed by adoption of cloud-managed consoles and flexible vendor financing. Regulatory compliance incentives and bundled service solutions are pulling SMEs into advanced protection, as demonstrated by the U.K. Cyber Security Breaches Survey 2024, which reported 75% of SMEs deploying at least one firewall.
Comprehensive regional analysis reveals that North America retained 38.20% market revenue in 2025, benefiting from extensive federal cybersecurity investments and demand from tech sectors. Asia-Pacific holds the fastest CAGR at 12.44% through 2031, with national policies such as China's Data Security Law and India's digital economy initiatives driving growth. Europe continues on a steady path, bolstered by GDPR and NIS2 compliance. Meanwhile, the Middle East and Africa witness acceleration from Vision 2030 in Saudi Arabia and the UAE's digital roadmap.
Key Topics Covered:
- 1 INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
- 2 RESEARCH METHODOLOGY
- 3 EXECUTIVE SUMMARY
- 4 MARKET LANDSCAPE
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Industry Value Chain Analysis
- 4.5 Regulatory Landscape
- 4.6 Technological Outlook
- 4.7 Porter's Five Forces Analysis
- 5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
- 5.1 By Component
- 5.2 By Organization Size
- 5.3 By End-user Industry
- 5.4 By Firewall Type
- 5.5 By Geography
- 6 COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
- 6.2 Strategic Moves
- 6.3 Market Share Analysis
- 6.4 Company Profiles
- 7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
- 7.1 White-space and Unmet-need Assessment
A selection of companies mentioned in this report includes, but is not limited to:
- Fortinet Inc.
- Palo Alto Networks Inc.
- Cisco Systems Inc.
- Check Point Software Technologies Ltd.
- Juniper Networks Inc.
- Huawei Technologies Co. Ltd.
- Barracuda Networks Inc.
- SonicWall Inc.
- WatchGuard Technologies Inc.
- Sophos Ltd.
- F5 Inc.
- Forcepoint LLC
- Hillstone Networks Co. Ltd.
- TopSec Technology Group Inc.
- AhnLab Inc.
- Ubiquiti Inc.
- Netgate (Electric Sheep Fencing LLC)
- CUJO LLC
- Bitdefender SRL
- Zscaler Inc.
- Array Networks Inc.
- Sangfor Technologies Inc.
- Stormshield (Airbus CyberSecurity)
For more information about this report visit https://www.researchandmarkets.com/r/o75crx
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
